Promoting Ethical Behavior in the Workplace

It is not difficult to understand that
ethical behavior should be promoted in the workplace, but all to often, people
turn a blind eye towards unethical practices. Employees may fail to report a
case of unethical behavior out of fear of retaliation. Furthermore, what does
and does not qualify as unethical behavior may not always be black and white.
“How to Define Ethical Behavior & Why it’s Important in the Workplace,” by
Katherine Huddleston, shares the following definition: “Ethics in the workplace
is defined as the moral code that guides the behavior of employees with respect
to what is right and wrong, and to what is good and bad, in regard to conduct
and decision making.” The following will discuss the importance of ethical
behavior in the work place and how organizations can promote ethical practices.

In
the article noted above, Huddleston points out that when allegations of
unethical behavior become public, operational distractions, public relations
disasters, financial liabilities, and even the collapse of an organization can
occur. She also notes that social media can increase the risk of reputational
damage to a company because allegations can spread rapidly from social media
posts to news headlines. To get a better idea as to what can happen when a
scandal becomes public knowledge, let’s take a look at the fraudulent activity
of Wells Fargo. Due to sales goals that were too high, employees resorted to
opening bank accounts and applying for credit cards without customers’
authorization or knowledge. This led to lofty fines and law suites as well as
the firing of 5,300 employees. On May 10, 2019, CNBC reported that Wells Fargo is still struggling to find a new
CEO under the headline, “Wells Fargo’s CEO search hindered by limits on how
much it can pay its next leader.” The organization is still experiencing the
ramifications of their past unethical behavior to this day. The Wells Fargo
scandal is a cautionary tale as to what may happen if unethical behavior
becomes prevalent and acceptable in the workplace.

Maintaining
an ethical workplace does more for an organization than simply preventing
scandals and destruction. “Managing Ethics in the Workplace,” published by
Alvernia University states, “The Society for Human Resource Management (SHRM)
notes that the stock price growth of the 100 firms with the most ethical
cultures outperformed stock market and peer indices by almost 300 percent,
based on the most widely used measure of ethical workplace culture.” In
addition to adding value to an organization, the article points out that
employees feel safe and valued when the workplace is highly ethical. Clearly,
feeling safe and valued would increase employees’ loyalty to their
organization.

There
are many steps that the leaders of an organization should take to promote
ethical behavior in the workplace. Creating codes of conduct and introducing
them to new employees is a frequently recommended practice for promoting proper
behavior. “Models of Ethical Behavior in Business,” by John Parker states, “The
specific circumstances covered [in a code of conduct] often include such issues
as arise in communicating with outside public on behalf of the organization, interactions
with superiors, fellow employees and subordinates, use of property of the
organization, accepting gifts in the capacity of a member or employee of the
organization and the like.” An example of a common problem that can be
addressed in a code of conduct is the personal use of company property. Company
issued computers and phones should not be used for personal conversations,
social media, or any other reason that do not have to do with work related
matters.

A
second practice that promotes ethical behavior in the workplace is leading by
example. If people at the top of an organization are involved in unethical
practices, why would lower level employees value strong ethics? “Demonstrating
Ethical Behavior,” by Audra Bianca stresses that modeling high integrity is an
important part of gaining the respect of employees and customers. It is
important to avoid tactics that unethical business owners may use. The article
states, “For example, if a competing business opens a few blocks away, it may
be tempting to try to discredit the owner of the new business. Instead, choose
proactive, ethical strategies to drum up more sales, such as increasing your
advertising or issuing new coupons.” Although discrediting a competitor may not
be illegal, this practice lacks integrity and does not set an ethical tone from
the top of the organization. The article also explains that in addition to
highlighting issues in a code of conduct, it is important to hold training and
meetings to discuss ethical scenarios and how they should be handled.

A
final commonly recommended way to promote ethics in the workplace is to empower
employees to report cases of workplace misconduct without fear of retaliation.
“Model Ethical Conduct in the Workplace,” by Ralph Heibutzki, states that “Managers
should train employees to report unethical behavior, and follow up promptly
when complaints surface.” One way to achieve this goal is to implement an
ethics hotline and case management system that allows employees to anonymously
report concerns. Taking this step demonstrates that organizational leaders
truly strive for an ethical workplace and want misconduct to be brought to
their attention. The knowledge that there is a safe and easy way to report
unethical behavior may also serve as a deterrent to an employee who would
otherwise believe that he/she could get away with misconduct. Finally, a case
management system allows assigned individuals to discover trends in unethical
behavior and to address the problem before it erupts into a scandal.

In
summary, strong ethics in the workplace promotes a healthy and thriving
organization. When misconduct and scandals become public knowledge,
organizations suffer serious consequences including public relations disasters
and even bankruptcy. Leaders must personally demonstrate high integrity to gain
the respect of employees. Codes of conduct supplemented with training on how to
address ethical scenarios or report misconduct are also crucial for stressing
what behaviors will and will not be tolerated. The tone at the top determines
whether an organization truly promotes ethical behavior in the workplace.

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We offer ethics, safety and fraud hotline / case management solutions to our clients via the web, over the phone and through other methods. Trusted by organizations large and small in 50 countries, we can help you!

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